Charlesbank Capital Partners, EIG Global Energy Partners and Tailwater
Capital (collectively, the “Sponsors”) provided a new $175 million
equity commitment to enhance liquidity and support anticipated growth
initiatives for Southcross and Holdings.

Of the total, $50 million is committed to Southcross and will be funded
as needed to pursue significant growth opportunities that currently
exist in the Eagle Ford, including both accretive organic capital
projects and strategic acquisitions. The new capital is also available
for potential future covenant cures and asset drop-downs from Holdings.
The capital is expected to be structured to minimize any potential
dilution of existing common unit holders.

The remaining $125 million will be directed to Holdings and utilized to
enhance the inventory of drop-down assets available to Southcross.
Holdings owns 100% of Southcross Energy Partners GP, LLC, the general
partner of Southcross, limited partner interests in Southcross and
several key Eagle Ford midstream assets. The capital that is committed
to Holdings is also available for direct investment in Southcross for
future growth projects.

“This recent capital commitment by the Sponsors reflects our continued
belief in the significant growth opportunities at Southcross and our
support of the management team,” said Jon Biotti of Charlesbank Capital
Partners. While the new commitment is expected to be sufficient to meet
forecasted growth capital needs through 2016, the Sponsors have stated a
willingness and a desire to provide incremental capital as needed to
fund additional growth projects. “The Sponsors are committed to pursuing
development projects and acquisitions structured in a way that is
accretive to the Southcross unitholders,” stated Wallace Henderson,
Managing Director of EIG Global Energy Partners. Jason Downie of
Tailwater Capital added, “We will continue to work closely with the
Southcross management team to drive growth through the current commodity
price environment.”

Path to Sustained Distribution Coverage

Southcross expects to achieve a coverage ratio of greater than 1.0x on
current outstanding common units in the fourth quarter of 2015 and
throughout fiscal year 2016, assuming the current quarterly distribution
of $0.40 per common unit. Southcross does not believe that growth in
processed gas volumes is required to generate quarterly adjusted EBITDA
sufficient to exceed 1.0x coverage, even without the benefit of
potential additional drop-downs. The sustainability of coverage is
supported by gross margins that are nearly 90% driven by fixed-fee and
fixed-spread agreements and do not have direct commodity exposure.

Further, Southcross expects to exceed 1.0x coverage including
outstanding subordinated units (but excluding outstanding Class B PIK
units) by the end of 2016. Southcross believes there is a clear path to
grow processed gas volumes in the current commodity price environment
and in turn deliver distributable cash flow growth and reduce financial
leverage. This outlook is grounded on management’s ongoing discussions
with current and prospective customers and is further reinforced by
Southcross’ fully integrated system of assets and the competitive
advantages of its end-market positioning in the Corpus Christi area.

“The strength of the Southcross Advantage and our focus on customer
service and relationships drives our ability to add gas to our system
from both new and existing customers,” said John Bonn, President and
Chief Executive Officer of Southcross’ general partner.

Dedicated Growth Inventory

Holdings maintains a robust inventory of assets that are well-suited to
be dropped down to Southcross. These include the Robstown Fractionator,
the Lancaster gathering system, a 100 MMcf/d treating facility, and two
strategically placed NGL pipelines. The assets are well-situated
geographically in the Eagle Ford shale and are interconnected with the
existing Southcross system. Several projects are currently underway to
further enhance the value of these assets. Train A of the Robstown
Fractionator is expected to be operational in September 2015 and will
increase the facility’s capacity to 63,000 Bbls/d. Expansion of the
Lancaster treating facility, which will double its capacity, is
anticipated to be completed in the third quarter of 2016. Based on the
treating and fractionation capacity for these assets, the estimated
annual adjusted EBITDA potential is in excess of $100 million.

Southcross is targeting to complete a drop-down every four to six
months, subject to market conditions and the anticipated ramp in volumes
for the Holdings assets. Southcross expects that the drop-down of these
assets could be completed as early as mid-2017.

About Southcross Energy Partners, L.P.

Southcross Energy Partners, L.P. is a master limited partnership that
provides natural gas gathering, processing, treating, compression and
transportation services and NGL fractionation and transportation
services. It also sources, purchases, transports and sells natural gas
and NGLs. Its assets are located in South Texas, Mississippi and Alabama
and include four gas processing plants, two fractionation plants and
approximately 3,100 miles of pipeline. The South Texas assets are
located in or near the Eagle Ford shale region. Southcross is
headquartered in Dallas, Texas. Visit www.southcrossenergy.com for more
information.

Forward-Looking Statements

This press release includes certain statements concerning expectations
for the future that are forward-looking within the meaning of the
federal securities laws. Forward-looking statements include, without
limitation, any statement that may project, indicate or imply future
results, events, performance or achievements, and may contain the words
“expect,” “intend,” “plan,” “anticipate,” “estimate,” “believe,” “will
be,” “will continue,” “will likely result,” and similar expressions, or
future conditional verbs such as “may,” “will,” “should,” “would” and
“could.” Without limiting the generality of the foregoing,
forward-looking statements contained in this press release specifically
include: the funding of the capital commitments by the Sponsors; the
structure and utilization of the capital; the availability of future
growth projects; the achievement of coverage ratios relative to
distributions on Southcross’ units; the ability to grow processed gas
volumes and delivering distributable cash flow and reducing leverage;
the ability of projects at Holdings to be completed; the availability of
assets for drop-down transactions, the completion of drop-down
transactions, and the timing of same; and the estimated annual EBITDA
relative to the potential drop-down inventory. Although Southcross
believes the expectations and forecasts reflected in these and other
forward-looking statements are reasonable, Southcross can give no
assurance they will prove to be correct. Forward-looking statements
contain known and unknown risks and uncertainties (many of which are
difficult to predict and beyond management’s control) that may cause
Southcross’ actual results in future periods to differ materially from
anticipated or projected results. An extensive list of specific material
risks and uncertainties affecting Southcross is contained in its Annual
Report on Form 10-K filed with the Securities and Exchange Commission
(the “SEC”) on March 6, 2015, its Quarterly Reports on Form 10-Q and in
other documents and reports filed from time to time with the SEC. Any
forward-looking statements in this press release are made as of the date
hereof and Southcross undertakes no obligation to update or revise any
forward-looking statements to reflect new information or events.

Use of Non-GAAP Financial Measures

We define Adjusted EBITDA as net income/loss, plus interest expense,
income tax expense, depreciation and amortization expense, equity in
losses of joint venture investments, certain non-cash charges (such as
non-cash unit-based compensation, impairments, loss on extinguishment of
debt and unrealized losses on derivative contracts), major litigation
costs net of recoveries, transaction-related costs, revenue deferral
adjustment, loss on sale of assets and selected charges that are unusual
or non-recurring; less interest income, income tax benefit, unrealized
gains on derivative contracts, equity in earnings of joint venture
investments and selected gains that are unusual or non-recurring.
Adjusted EBITDA should not be considered an alternative to net income,
operating cash flow or any other measure of financial performance
presented in accordance with GAAP.

We believe that the presentation of non-GAAP financial measures provides
useful information to investors in assessing our financial condition,
results of operations and cash flows from operations. Our non-GAAP
financial measures should not be considered as alternatives to the most
directly comparable GAAP financial measure. Non-GAAP financial measures
have important limitations as an analytical tool because each excludes
some but not all items that affect the most directly comparable GAAP
financial measure. You should not consider Adjusted EBITDA in isolation
or as a substitute for analysis of our results as reported under GAAP.
Because Adjusted EBITDA may be defined differently by other companies in
our industry, our definition of this non-GAAP financial measure may not
be comparable to similarly titled measures of other companies, thereby
diminishing its utility.

Adjusted EBITDA is used as a supplemental measure by our management and
by external users of our financial statements such as investors,
commercial banks, research analysts and others, to assess the financial
performance of our assets without regard to financing methods, capital
structure or historical cost basis; the ability of our assets to
generate cash sufficient to support our indebtedness and make future
cash distributions; operating performance and return on capital as
compared to those of other companies in the midstream energy sector,
without regard to financing or capital structure; and the attractiveness
of capital projects and acquisitions and the overall rates of return on
investment opportunities.